Category Archives: Fiduciary Duties
4 Estate Litigation Predictions For 2018
The new year is a good time to look ahead at what trends we may expect to see in the area of estate litigation in 2018. I have 4 predictions. #1: The Volume Of Estate Litigation Will Continue To Increase We are very likely to see an increase in the volume of estate litigation in 2018. There are many reasons for this. First, our society is increasingly aging, and with more elderly people passing away each year, the scope of potential estates and trusts that could give rise to litigation increases. Second, more money is being passed down via inheritance …
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The Role of the Commissioner of Accounts in Virginia Estate and Trust Administration
People typically picture the probate process going something like this: a person dies, you find their will, you take the will to the courthouse, the executor pays the debts, and then the executor distributes the assets. Of course, the process is much more complicated and time-consuming than that. Moreover, there are also multiple people involved in the process of administering an estate or testamentary trust. One of these critical people is the Commissioner of Accounts. If you are serving, or have served, as the executor or administrator of an estate in Virginia, you will no doubt have been in contact …
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Trust Decanting Disputes
As trust decanting becomes increasingly popular, we can expect to see more disputes and litigation regarding trust decanting. This blog post examines some of the main issues that will likely arise in those disputes. First, what is trust decanting? The Uniform Law Commission states: “’Decanting’ is the term used to describe the distribution of assets from one trust into a second trust, like wine is decanted from the bottle to another vessel. Decanting can be a useful strategy for changing the outdated terms of an otherwise irrevocable trust, but can also be abused to defeat the settlor’s intent.” Essentially, decanting …
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Trustee Removal Lawsuits: An Overview
How can a person remove a trustee of a trust? Depending on the language of the trust, there could be several ways. This blog post summarizes some of the options, and provides an overview of things to consider when a person wants to remove a trustee. First, the terms of the trust itself may provide procedures for the removal of a trustee. Oftentimes, comprehensively-drafted trust instruments will contain specific procedures whereby beneficiaries or a beneficiary may remove a trustee. Those procedures could require a specific reason for the trustee removal (such as misconduct on the part of the trustee) or …
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Misconduct Remedies Against an Agent Under a Power of Attorney
In a prior blog post, I discussed the duties of an agent under a power of attorney. In this blog post, I discuss the remedies that people have against an agent under a power of attorney when the agent commits misconduct. The first issue is who has standing to pursue legal action against an agent under a power of attorney? Virginia has adopted a modified version of the Uniform Power of Attorney Act that spells out the categories of people who can seek judicial relief against an agent. Under Virginia Code Section 64.2-1614, the following are some of the parties …
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Duties of an Agent Under a Power of Attorney
Many average people are named as agents under a power of attorney for a family member or friend, and most have little to no idea what they are getting themselves into. Many people also are aware of the fact that a relative may serve as agent under a power of attorney for a family member or friend, and may be ignorant of how much financial mischief that person could commit with that authority. This blog post outlines the duties of an agent under a power of attorney. I will follow-up this blog post with another post in the coming weeks …
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The Rise of Litigation Involving Trust Protectors
Disputes involving trust protectors are increasing in number and will likely only further increase in number in the coming years. This blog post discusses what a trust protector is, whether trust protectors owe fiduciary duties (and to whom), and why litigation involving trust protectors is likely to increase in the future. What Is A Trust Protector? A trust protector is a person who is named in a trust to exercise varying types of oversight functions with respect to a trustee, or to exercise certain powers with respect to amending the trust. The powers of a trust protector can vary widely, …
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Confronting Caretaker Abuse & Misconduct
While most caretakers for sick and elderly people are honest, occasionally families and friends are forced to deal with a dishonest caretaker who steals a person’s money; pressures him to change a will, trust, or power of attorney; pressures him to sign a deed; isolates him from family members, etc. A recent article highlights this unfortunate fact: A Newport News [Virginia] woman will serve a fraction of a 30-year prison sentence for stealing $30,000 from a woman she cared for. Michele Lee Conley, 43, received three-year prison sentences for 10 counts of forgery and uttering after she tricked a 92-year-old …
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Tips For Successful Succession Planning
“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” ― Abraham Lincoln Your company is built to last. But when you are ready to step back and let go of the reins, will the next generation preserve your legacy? Many times my clients owning a closely-held company or family-owned business have shared with me their hope to ensure a successful transition at their company to future leaders. And as a litigator, too often I’ve seen shaky succession plans fall apart, forcing my clients to dismiss potential future leaders and reinsert …
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Trustees Should Avoid Bitcoin
As bitcoin becomes increasingly popular, some are starting to ask: should trustees of trusts invest a portion of trust assets in bitcoin? There are very strong reasons why they should not. As I explain below, investing in bitcoin, in most circumstances, could put a trustee at risk of violating the Uniform Prudent Investor Act. First some background: for those unfamiliar with bitcoin, Wikipedia provides a helpful overview: Bitcoin is an online payment system invented by Satoshi Nakamoto, who published his invention in 2008, and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without …
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